Bitwise Retracts Application for BTC and ETH Market Cap ETF
- Bitwise has withdrawn its application for its Bitcoin and Ether Market Cap Weight Strategy exchange-traded fund (ETF).
- The application for the approval of the BTC and ETH Market Cap ETF was initially filed with the SEC on August 3.
- The crypto sector turned bullish after Grayscale’s win against the SEC, and Bitwise’s decision came as a surprise.
- The firm’s chief investment officer, Matt Hougan, recently called for the approval of all crypto ETFs in an interview.
Bitwise, a crypto index fund manager headquartered in San Francisco, has withdrawn its application for its Bitcoin and Ether Market Cap Weight Strategy exchange-traded fund (ETF) in an unexpected turn of events for the crypto sector. It is crucial to note that the decision comes at a time when the United States Securities and Exchange Commission has postponed or shot down Bitcoin and Ether spot ETFs.
Interestingly, the application for approval of the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF was initially filed with the SEC on August 3 and now, it seems that the crypto fund manager is reconsidering its steps. While the sentiment in the crypto sector turned bullish after digital asset management firm Grayscale secured a landmark victory against the SEC, the withdrawal application came as a surprise.
In the withdrawal statement, Bitwise noted that “the fund seeks to provide investors with capital appreciation. There can be no assurance that the fund will achieve its investment objective,” while adding:
“The Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold, or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.”
Bitwise chief investment officer Matt Hougan recently called for the approval of all crypto ETFs in a Bloomberg interview, and it is unclear why the crypto fund manager changed its strategy all of a sudden.
Back in November 2022, the firm submitted a request with the SEC for the approval of the “Bitcoin Strategy Optimum Yield ETF,” which would trade under the ticker BITC and would offer exposure to Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME) and investments in short-term debt securities.
More importantly, the SEC has delayed its decision on all the Bitcoin spot ETF applications submitted by WisdomTree, VanEck, Invesco Galaxy, Bitwise, and Valkyrie, including the Wise Origin Bitcoin Trust proposed by Fidelity. BlackRock’s application became the seventh one to be postponed by the regulator.